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Unformatted text preview: ent stores increase their inventory of products aimed at middle­aged consumers and decrease their inventory of products aimed at younger consumers. This argument is problematic for two reasons. First, an increase in the number of middle­aged people does not necessarily portend an overall increase in department­store sales. It does so only on the assumption that other population groups will remain relatively constant. For example, if the expected increase in the number of middle­aged people is offset by an equally significant decrease in the number of younger people, there will be little or no net gain in sales. Second, in recommending that department stores replace products intended to attract younger consumers with products more suitable to middle­aged consumers, the author assumes that the number of younger consumers will not also increase. Since a sizable increase in the population of younger consumers could conceivably offset the difference in the retail expenditure patterns of younger and middle­aged consumers, it would be unwise to make the recommended inventory adjustment lacking evidence to support this assumption. In conclusion, this argument is unacceptable. To strengt...
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This note was uploaded on 05/05/2009 for the course ECAS asdfasdf taught by Professor Asdfaf during the Spring '09 term at Academy of Art University.

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